«Inactive» companies The countdown has started

The 2023 Finance Law provides for two mechanisms to regularize the tax status of companies that have been inactive for too long. Inactive companies are defined as legal entities or individuals that have not generated any sales or have only paid the minimum contribution for the last four financial years.
There are still just under five months to benefit from this measure, which expires on December 31. Depending on the results and the Government’s determination, the scheme could be renewed in the 2024 Finance Law. 
It should also be noted that fiscal years that have been subject to one of the tax base rectification procedures provided for in Articles 220 and 221 of the General Tax Code (CGI) are not eligible for this transitional regime.
The first measure provided for by the 2023 Finance Law in terms of regularization targets companies that wish to permanently cease their activities through a simplified procedure, limited in time since it expires on December 31. In return, they benefit from exemption from tax audits and from the automatic cancellation of penalties for failure to file their returns and pay taxes as stipulated by the CGI. The scheme is governed by article 247-XXXVIII of the General Tax Code. To be eligible for the scheme, a declaration of total cessation of activity must be filed. Many of the entities concerned are already preparing to activate this scheme by opting for liquidation. In principle, these entities will not be notified by the tax authorities as they are up to date in filing their returns and paying the minimum contribution. These taxpayers have until December 31 to dissolve their company or, in the case of individuals, cease all activity once for all. To do so, however, taxpayers must provide a certificate of deletion from the trade and professional tax register. When filing their declaration of cessation of activity, taxpayers must choose option 247-XXXVIII, subject to payment of a flat-rate contribution in full discharge of tax liability of 5,000 Dirhams (USD 500) per year, or a total of 25,000 Dirhams (USD 2,500) depending on the number of years not barred by the status of limitations. Taxpayers who take these steps are exempt from the tax audit, provided they have not issued or used fictitious invoices. One really needs a clean criminal record. Unpaid minimum tax, unpaid business tax or unpaid advance payments do not exempt you from paying them, and are not covered by the annual 5,000 Dirham contribution. 

Hassan El Arif